Leap Doubles to $16.68, Above AT&T’s Proposed $15 Buyout

By Tiernan Ray

Another domino falls in the U.S. cellular game as AT&T (T) this evening announced it will purchase Leap Wireless International (LEAP) for $15 per share in cash, or $1.19 billion, an 88% premium to the stock’s $7.98 closing price today.

Leap shares are above that in late trading, at $16.68, up 109%. AT&T shares are unchanged at $35.81.

In its statement, AT&T notes Leap, which offers the Cricket cellular brand, which AT&T plans to keep, covers 96 million people in its markets, and covers 21 million people with 4G service. Leap has $2.8 billion in net debt, AT&T notes.

AT&T says Leap’s spectrum coverage in the PCS and AWS bands is complementary to its own.

According to AT&T, “The combined company will have the financial resources, scale and spectrum to better compete with other major national providers for customers interested in low-cost prepaid service.”

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.